The beginning and ending balances of long-term debt are $69,000 and $40,200, respectively, and, cash payments for long-term debt during the year were $39,100. How much new long-term debt was issued during the year?
A)New long-term debt issued during the year was $1100.
B)New long-term debt issued during the year was $10,300.
C)New long-term debt issued during the year was $28,800.
D)New long-term debt issued during the year was $79,300.

Question

Quizplus · Accepted Answer

To find the amount of new long-term debt issued, we can use the formula: Ending Balance = Beginning Balance - Cash Payments + New Debt Issued. Plugging in the given values: $40,200 = $69,000 - $39,100 + New Debt Issued. Solving for New Debt Issued gives us $10,300.

The Beginning and Ending Balances of Long-Term Debt Are $69,000